If the average productivity of Canadian firms is rising more quickly than the average productivity of Indian firms, which of the following would you expect to see? (India's currency is the rupee.)

Question

Quizplus · Accepted Answer

When the productivity of Canadian firms increases more quickly than that of Indian firms, Canadian goods become relatively more attractive due to their higher quality, innovation, or lower prices resulting from increased efficiency. This makes consumers more likely to choose Canadian products over Indian products, leading to a decrease in the quantity demanded of Indian products relative to Canadian products.

If the Average Productivity of Canadian Firms Is Rising More